Question
Cheyenne sells 80 gift cards at $70 per gift card and 53 of the gift cards are redeemed by year end. It is estimated that
Cheyenne sells 80 gift cards at $70 per gift card and 53 of the gift cards are redeemed by year end. It is estimated that 10 of the gift cards will not be redeemed.
How to record
Cash 5600
Unearned gift expense 5600
(to record sale of 80 gift cards)
How do you record the next entry for redemption and breakage of gift cards?
Unearned gift card revenue. XX?
Sales Revenue 3710
Sales Revenue (breakage). xxx?
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Auditing Cases An Active Learning Approach
Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt
2nd Edition
